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Thursday 10 May, 2001


Final Results PLC
9 May 2001



 Preliminary results for the period from 11 January 2000 to 31 December 2000


9 May, 2001

Dear Shareholder,

Your company went through an eventful year in 2000 and I am pleased to present
to you our first annual business and financial report for the period from 11
January, 2000 (date of incorporation) to 31 December, 2000 (the 'Period').


Your company and its subsidiaries recorded an audited consolidated loss of £
634,900 for the Period. Of this loss approximately £388,000 attributed to
expenditure incurred in relation to the company's Extraordinary General
Meeting (the 'EGM') held on 20 September, 2000. In the absence of similar
events, the Directors of your company ('Your Directors') do not expect such
expenditure to be recurrent in future reporting periods.

Your company and its subsidiaries received total revenues of £385,876 in the
Period. The breakdown of these revenues is as follows :

Interest income                                                        £360,210
Rental and administration fee income                                     £2,060
Gain on disposal of investment                                          £23,606

As at 31 December, 2000, your company's audited net asset value per share was
approximately 4.6p, and its cash balance per share was 1.5p.


Owing to the loss recorded for the Period, Your Directors do not recommend the
payment of a dividend.

Flotation on AIM

Your company was successfully floated on the Alternative Investment Market of
the London Stock Exchange on 22 February, 2000. Approximately 239,600,000 new
shares were issued at 5p each, bringing total net cash proceeds, after
flotation expenses, of approximately £11,600,000 for investment and working

Your company was floated amidst a market climate in which sentiments towards
companies related to the information technology ('IT') sector began to move
away from irrationally high levels. As of today, our business strategy and
market position continue to offer a differentiating edge among similar
companies listed on the London Stock Exchange.

Business Strategy

Your company aims at investing in start-up and early stage Internet and IT
related companies arising from the Asian market, with a focus upon the Far
East. Our mission is to provide the necessary financial support and management
expertise to those companies with the potential to offer a reasonable return
over a medium to long term time frame, typically 3 to 5 years. As a general
rule, your company does not take up a controlling interest in any investee
project, but board representation is mandatory. We seek to realize gains on
these investments by exiting at an appropriate time, likely through a trade
sale or flotation, rather than by way of sharing in the projects' regular
operating profits.

We use traditional business fundamentals and established disciplines to
evaluate and manage our investment projects. We see IT or the Internet as a
means to enhance a business that has sound and proven fundamentals, not an end
by itself. Although we aim at realizing capital gains via exit of any project,
we adopt a long term vision on all projects instead of a speculative attitude
based solely on financial engineering techniques.

Business Operations

During its first year of operation, your company's business efforts
concentrated mainly on investment opportunities emerging from the Greater
China markets (i.e. Mainland China, Hong Kong and Taiwan). This is the region
in which Your Directors are best connected and most experienced.

Your company has an operating office based in the Hong Kong Special
Administrative Region ('Hong Kong'), which is located strategically in the
centre of our key markets and offers a stable legal and financial environment.
Your management team in Hong Kong consists of the Chief Executive Officer and
4 executives, who together provide an extensive skill pool comprising
expertise in marketing, sales, IT, corporate finance, administration and
financial management gained in a variety of industrial sectors including
technology, retail, media, banking, advertising, investment and small
enterprises. With such a slim set-up, your company's overheads can be
contained while business development can progress in an efficient and
effective manner.

During the Period, your investment team's initial efforts were focused on the
solicitation and evaluation of investment opportunities, and negotiating for
the optimal investment terms. The assessment process always follows a rigorous
set of procedures which evaluates the commercial, technological, financial and
legal aspects of a prospective project, taking into consideration both the
culture and business dynamics specific to the relevant markets, and the
aptitude and capabilities of the people who are expected to drive and grow the
project. While any investment decision has to be founded upon objective
disciplines, an element of subjectivity based on your team's experiences and
market knowledge is also essential.

As the investment portfolio is progressively built up, your investment
management team's efforts gradually shifted to the management and supervision
of the investee projects. They are involved actively in the projects' business
and technology development at a strategic level, and closely monitor the
progress and performance of the projects.

Your executive team is also proactively studying new, quality projects to
complete the portfolio. A healthy deal flow is expected to continue, mainly
through referrals from sources existing in the business circles of Your
Directors, your management team and the existing investee projects. This is
believed to be the most efficient approach in terms of both time and marketing

The Investment Portfolio

Since our flotation in February, 2000, we have invested in a total of 8
projects :
                                 Month           Original investment       % of
                        investment was    (approximate amount in £s)     equity
                                  made                                     held

Cybermax Network             Sept 2000                     1,379,000        49%
Technology Limited
UFO Solutions Limited        Sept 2000                     1,280,000        50%
Net Fun Limited              Sept 2000                     1,223,000         8%
CFN (UK) Limited             July 2000                     1,200,000     39.99% Limited           Aug 2000                     1,170,000        33%
P&S International            June 2000                       856,000       2.2%
iBASE Holdings Limited       June 2000                       257,000        49%
                              Jan 2001                       129,000       Loan
Winshare Technology          July 2000                       252,000        50%

We disposed of our investment in Winshare Technology Limited ('Winshare') on
15 December, 2000 for a cash consideration of HK$3,200,000 (approximately £
280,000) before deduction of legal costs. Winshare is a start-up project which
develops and markets front-office components for online stock trading systems
used by brokers in Hong Kong. Although Winshare's product development had gone
to plan, Your Directors believed that due to unexpected market changes the
project would need considerable additional marketing resources in order to
maintain its original competitive advantages. Therefore, it was considered by
Your Directors to be more beneficial to our shareholders to sell our interest
in Winshare.

A summary of the other existing projects' business and their current status
can be found in the list following this Statement. While each of them has
reached a different stage of development and various fine-tuning changes need
to be continually made on all projects in a dynamic market, Your Directors
believe that the projects should be able to attain their respective business
goals as stated in their business plans at the time of our investment.

Share Price

Your company was floated at a price without any premium to the net asset
value. Within one month after the flotation, the share price reached a
historical high of 18.5p. As your company was only newly formed and the
published business strategy had yet to be implemented progressively, we saw
the uptrend was merely a reflection of the strong market sentiment favouring
IT stocks prevailing during that period.

Subsequent to its peak in March, 2000, the share price gradually declined, in
line with a general downturn in the market sentiment towards IT related
companies. As at the end of 2000, the share price closed at 2.5p.

Despite market volatility which has had a direct impact on our share price
performance in 2000, Your Directors remain confident about our strong market
position and the sector in which we operate. Your executive team will continue
to build a sound and well managed investment portfolio that can generate long
term value for our shareholders.

Shareholder Communications

Your Directors are aware that our present shareholder base is composed of a
large number of investors (relative to your company's size), many of whom may
not have access to information normally available to professional,
institutional investment decision makers. Furthermore, most of our
shareholders are resident in the U.K. and are geographically separated from
your executive team who is based in the Far East.

The importance of efficient shareholder communications, therefore, is never
under-estimated by Your Directors. Although your company has only limited
management resources, considerable efforts have been put into effective
communications with our shareholders and the general investor public in the
U.K., including :

  * A dedicated shareholders' section in our website;

  * Regular meetings with journalists from both traditional and online

  * Timely dissemination of information about significant business
    activities via the RNS service of AIM;

  * Open channel in our website to encourage direct dialogue between our
    shareholders and the management team.

Your U.K. resident director has been appointed as the Corporate Relations
Director, so he is available to speak directly to any shareholder who wishes
to contact the company.

Although it is Your Directors' intention to maintain a high level of
transparency, there are regulatory, legal and commercial restrictions on
information distribution. Premature announcements of your company's activities
may result in a breach of confidentiality undertaken with project owners, put
us in a less favourable position at the negotiation table, or weaken our
projects' competitive positions in the market. All these are undesirable from
the point of view of our shareholders' interests, and the appropriate balance
should be maintained.


In August, 2000, your company received an EGM requisition (the 'Requisition')
from Artisan (UK) plc ('Artisan'), requesting that two of Your Directors be
replaced by three nominees from Artisan. Artisan was then holding 21.8%
interest in the shares of your company.

Prior to receiving the Requisition, Your Directors made constructive efforts
to obtain concrete information and a proposal from Artisan in several
instances. No useful information nor actionable proposal was received from
Artisan. Therefore, Your Directors saw the Requisition as the attempt by an
opportunistic minority shareholder to seize control of your company and its
cash assets, without making any offer to our shareholders nor proposing any
alternative strategy.

The EGM was held on 20 September, 2000. The results were in favour of Your
Directors' recommendation to vote against all resolutions proposed by Artisan.

As mentioned in this statement earlier, your company has incurred substantial
costs in relation to the EGM. Your Directors believe that such costs were
essential in defending the general interest of our shareholders and protecting
their information rights.

The Future

The worldwide capital market for IT related companies has entered a period of
rationalization when, in contrast to 1999 and the early part of 2000, business
valuations and prospects are measured in a more realistic and practical
manner. Your company's existing portfolio of investments has been based on the
principles of conventional business logic and has avoided the over-valued,
over-spent sector. We shall continue to adopt a conservative approach in the
business development of our investee projects in 2001. Nevertheless, in the
short term at least, market sentiment does not favour even the better placed
IT related companies despite their sound fundamentals and, whilst we are a
relatively small player, we must do all that we can to differentiate your
company favourably within the sector.

We regard marketing as a useful tool to build up your company's awareness and
credibility in the relevant markets in order to support the growth and exit of
our investment projects. As these projects launch their products and
progressively mature, we shall leverage on the market profile of the projects.
This is seen as a cost-effective and win-win marketing approach.

The largest market potential in the Far East will undoubtedly come from
Greater China, in particular the Mainland. Favourable trade and investment
climate, together with an increasingly affluent city population who are ready
to adopt new consumer technology, will all support a fast growing IT sector in
China. The rationalization process in this sector will be similar to elsewhere
in the world, so Your Directors will persistently apply a long term investment
approach in managing your company's projects. With your team's connections and
experience, the company is well positioned to benefit from the rapid growth
and future prosperity in the region.

Apart from managing the existing projects, your team is currently studying
projects arising from Guangzhou, Shanghai, Shenzhen, Beijing and Seoul. Among
other factors, short time-to-market and exclusive intellectual properties will
be key criteria in our evaluation of these new projects. Your team will also
actively look for opportunities of possible alliances which may strengthen
your company's resources, create synergy with existing investment projects or
enhance the future base of your portfolio.

We shall endeavour to further enhance our shareholder communications
programme. Our website is being re-designed to make it more user friendly and
informative. More frequent meetings with the U.K. press and investors are also
being scheduled. As our projects are becoming ready to market, their progress
will also be reported regularly to our shareholders.

2000 was our first year of operation but also a year in which extreme market
volatility was witnessed. Your company's management team has made remarkable
accomplishments during a difficult year, with persistent efforts and
unparalleled dedication. I take this opportunity to express my sincere
gratitude to their contribution to your company during the Period.

Peter So


Press enquiries:-
Phill Brown                                                       01274 623478,
Corporate Relations Director,
Shane Dolan, Biddicks                                             020 7448 1000

Investment Portfolio

Cybermax Network Technology Limited ('Cybermax')

Cybermax operates websites displaying recruitment advertising for part-time
jobs, and owns the domain name ''. It has already launched a
website of this nature in Hong Kong, targeting those seeking part-time and
temporary work as well as those wishing to earn additional income by taking a
second job.

Features offered by are specially designed to cater for the
needs and behaviour of both part-time jobseekers and employers, a market that
is significantly different from the full-time job market. Cybermax also
operates a proprietary customer relationship management system to support its
sales programs and services to recruiters. Subsequent to the launch of a major
promotional campaign by leading international advertising agency, Ogilvy and
Mather, in April, 2001, currently has over 100,000 registered
jobseekers and nearly 5,000 registered recruiters.

Cybermax is now planning to establish similar operations in Japan, Mainland
China and Macau.

UFO Solutions Limited ('UFO Solutions')

Formerly known as Best Wisdom Limited, UFO Solutions is engaged in the
business, to be branded 'Unified Financial Omnibus', of developing and
providing software systems to assist stock brokers, fund management houses and
custodian banks in the trading, fund management and custodianship of Hong Kong
and overseas securities.

Under the leadership of its Chief Executive Officer who is a well-connected,
highly respected professional with a successful track record in the
development and marketing of securities trading systems, UFO Solutions is now
moving into an aggressive phase, aiming at its first product launch in mid-
2001. In parallel with the self-development of major system components by its
own team of programmers, UFO Solutions is also actively forming alliances with
owners of proven system components as well as marketing partners.

Net Fun Limited ('Net Fun')

Net Fun provides interactive entertainment and education services with
contents fine-tuned to the language and culture in the Greater China region.
Apart from offering games at the virtual community 'CyberCity', new game
development will continue to target children and teenagers, delivered on CD
and via the Internet. Its first CD-based 3D game was launched in early 2001
through Fortress, the largest electrical appliance retail chain in Hong Kong,
and a member of the Hutchison Whampoa Group.

A major shareholder of Net Fun is a subsidiary of Cheung Kong (Holdings)
Limited ('Cheung Kong'), a multi-national conglomerate headquartered in Hong
Kong with diversified interests in property, telecommunications, port
operations, retail and IT related business. Net Fun is actively exploring
alliances within the Cheung Kong group, so as to leverage on the group's
extensive experience in marketing and distribution, as well as its wide
reaching customer network and high penetration in residential housing.

Other shareholders of Net Fun are associated with Excel Technology
International Holdings Limited, which is a Hong Kong listed company and a
leading e-solutions provider in the banking and finance sector in Asia.

CFN (UK) Limited ('CFN UK')

CFN UK plans to become a provider of value added services to small to medium
sized brokers and financial institutions in the UK, facilitating them to
expand into Internet trading and overseas investment services.

While the business of CFN UK is based in the U.K., one of its strengths lies
in its ability to capture opportunities and build associations arising from
the Far Eastern markets. The management team of CFN UK operates from its
London office. They offer extensive senior-level experiences in securities
trading in Asia and the U.K.

CFN UK is now clearing regulatory and licensing issues and expects to be ready
for its product launch in the third quarter of 2001. Limited ('ecAgent')

ecAgent plans to provide a virtual office environment to insurance sales
agents in Greater China. It will offer a comprehensive range of sales
management, administrative, marketing and financial functions that can
facilitate the agents' daily sales and administrative needs, thus freeing them
to become more productive in their sales work. After initial success is
achieved, the same concept can be extended to cover sales people in other

While the products and systems of ecAgent are being developed for launch in
2001, a significant competitor with similar business nature has emerged in
Mainland China. Therefore, ecAgent is now considering changes in its business
plan in order to maintain its competitive advantage. The changes may include a
shift of initial priorities from the Hong Kong market to Mainland China,
enhancements in product features, relocation of ecAgent's operating office to
the Mainland, and strengthening of its Mainland China management team.

P & S International Limited ('P&S International')

P & S International is involved in the development of total system solutions,
including semiconductor chips, for facilitating the bi-directional
communications connectivity between appliances and equipment with embedded
microcontroller units ('MCUs') and the Internet. Such connectivity will enable
remote control and monitoring of home appliances, business, industrial and
medical equipment. The design is based on a cost-effective technology

P & S International has filed applications for several U.S. patents in
relation to its technology, aiming at establishing an industry standard that
is hitherto exclusive in the global market. It has joined the OSGi, a
consortium with many of the world famous IT and telecommunications brands as
members, and will promote the standard to leading semiconductor manufacturers.

The major shareholder in this project is a member of the Wuhan P & S
Electronics Group, an experienced trader and solutions provider in MCUs based
in central China, with an active customer base comprising many major Chinese
appliance and equipment manufacturers.

P & S International has established an operating office in Phoenix, Arizona.
The office is managed by senior executives previously with multi-national
semiconductor groups and international banks.

iBASE Holdings Limited ('iBASE')

iBASE provides IT and e-commerce solutions to a wide spectrum of businesses,
including multi-national and listed companies, with a particular focus on the
Greater China market. Its strength lies in online payment logistics, Linux
server solutions and technologies associated with domain names in Chinese

iBASE also owns and operates, a soccer-related website targeted
towards soccer fans in Hong Kong and Mainland China. Managed by ex-soccer
stars and sports commentators, the website aims at generating various
commercial opportunities arising from soccer by building a relevant community
through the brand 'Goal4u'. It is now publishing a monthly soccer magazine and
organizing soccer training programmes in Hong Kong. Other activities to be
launched soon include merchandizing and travel programmes.



The directors present their report and financial statements for the period
ended 31 December 2000.


The company was incorporated on 11 January 2000.

A special resolution was passed on 17 January 2000, changing the company's
name to plc.

Principal activities and review of the business

During the period, the principal activity of the company and group was to
provide venture capital to start up and early stage IT and related businesses,
focusing in Asia, particularly the Far East.

It is considered that the development of the Group and its position at 31
December 2000 are fairly set out in the accompanying financial statements.

Results and dividends

The results for the period are set out on page 5.

The directors do not recommend a dividend payment for the period.


The directors who have held office during the period:
                                                    Appointed          Resigned
Peter So (Non-Executive Chairman)             18 January 2000
Benjamin Ng (Chief Executive Officer)         1 February 2000
Phill Brown (Corporate Relations Director)    18 January 2000
Siu Fai Ng (Non-Executive Director)           18 January 2000
Huntsmoor Limited                             11 January 2000   18 January 2000
Huntsmoor Nominees Limited                    11 January 2000   18 January 2000

Directors' interests

The directors' beneficial interests in the shares of the company were as
stated below:
                                  Ordinary shares of 1p each
                             At date of incorporation          31 December 2000
Peter So                                            -                20,000,000
Benjamin Ng                                         -                   400,001
Phill Brown                                         -                10,000,000
Siu Fai Ng                                          -                11,000,000


FOR THE PERIOD ENDED 31 DECEMBER 2000 plc executive share option scheme

Date of        Number of ordinary  Exercise price per      Exercise period
grant                      shares               share

7 February              1,000,000                  5p         From           To
2000                                                    7 February   7 February
                                                              2000         2010

Creditor payment policy

The Group agrees terms and conditions for its business transactions with
suppliers. Payment is then made in accordance with these terms, subject to the
supplier fulfilling its obligations. On average payment is made to suppliers
around thirty days after invoice receipt.


Pridie Brewster were appointed auditors to the company and in accordance with
section 385 of the Companies Act 1985, a resolution proposing that they be
re-appointed will be put to the Annual General Meeting.

Substantial interests

As at the date of this Report, the Company has been notified of the following
interests in the issued share capital of the Company in accordance with
section 198 of the Companies Act 1985 (as amended).

Number of shares                                                    Percentage

Artisan (UK) plc                                 52,325,000              21.8%

Fiske Nominees Limited                           10,407,398               4.3%

Clarest Holdings Limited                         10,000,000               4.2% plc                                  10,000,000               4.2%

The shares held by Clarest Holdings Limited represent the interests of Peter
So who is a director and shareholder of Clarest Holdings Limited.

The shares held by plc represent the interests of Peter So, Siu
Fai Ng and Phill Brown, who are directors and shareholders of plc.
Their total shareholding in plc amounts to 21.3%.




The Combined Code

The Group aims to comply with the principles set out in Section 1 of the
Combined Code.

The Board currently consists of four directors, two of whom are executives,
one being full-time and the other being part-time.

Detailed below, are provisions that have not been complied with:

The Board has not established any committee during the period as it is
considered that the structure of the Board is appropriate for the Group and

The Group's business has not developed sufficiently, in the directors'
opinion, to warrant the establishment of an audit committee and a remuneration
committee. Consequently, there are no reports prepared by management relating
to the interim and annual accounts and to the system of internal control. A
report to the shareholders by the Board, detailing the remuneration policy and
benefits has not been prepared.

Going Concern

The accounts have been prepared on a going concern basis, since the directors
are satisfied that the Group has adequate resources to continue in operational
existence for the foreseeable future.

Directors' responsibilities

Company law requires the directors to prepare financial statements for each
financial year which give a true and fair view of the state of affairs of the
company and group and of the profit or loss of the group for that period. In
preparing those financial statements, the directors are required to:

  * select suitable accounting policies and then apply them consistently;

  * make judgements and estimates that are reasonable and prudent;

  * prepare the financial statements on the going concern basis unless it is
    inappropriate to presume that the company will continue in business;

  * State whether applicable standards have been followed, subject to any
    material departures disclosed and explained in the financial statements.

The directors are responsible for keeping proper accounting records which
disclose with reasonable accuracy at any time the financial position of the
company and group and to enable them to ensure that the financial statements
comply with the Companies Act 1985. They are also responsible for safeguarding
the assets of the company and group and hence for taking reasonable steps for
the prevention and detection of fraud and other irregularities.

By order of the board

Benjamin Ng




We have audited the financial statements on pages 5 to 17 which have been
prepared under the historical cost convention and the accounting policies set
out on page 10.

Respective responsibilities of directors and auditors

As described on page 3 the company's directors are responsible for the
preparation of financial statements. It is our responsibility to form an
independent opinion, based on our audit, on those statements and to report our
opinion to you.

Basis of opinion

We conducted our audit in accordance with Auditing Standards issued by the
Auditing Practices Board. An audit includes examination, on a test basis, of
evidence relevant to the amounts and disclosures in the financial statements.
It also includes an assessment of the significant estimates and judgements
made by the directors in the preparation of the financial statements, and of
whether the accounting policies are appropriate to the company's and group's
circumstances, consistently applied and adequately disclosed.

We planned and performed our audit so as to obtain all the information and
explanations which we considered necessary in order to provide us with
sufficient evidence to give reasonable assurance that the financial statements
are free from material misstatement, whether caused by fraud or other
irregularity or error. In forming our opinion we also evaluated the overall
adequacy of the presentation of information in the financial statements.


In our opinion the financial statements give a true and fair view of the state
of the company and group affairs as at 31 December 2000 and of the group loss
for the period then ended and have been properly prepared in accordance with
the Companies Act 1985.

Pridie Brewster

9 May 2001

Chartered Accountants
Registered Auditor

                                                                    31 December
                                                         Notes                £

Gain on disposal of subsidiary investment                                23,606

Administrative expenses                                               (632,386)
    -Exceptional costs                                                (388,390)

Other operating income                                                    2,060
Operating loss                                               3        (995,110)

Other interest receivable and similar income                            360,210
Loss on ordinary activities before taxation                           (634,900)

Tax on loss on ordinary activities                           4                -
Loss on ordinary activities after taxation                  10        (634,900)

Basic loss per share                                        14              0.3
Diluted loss per share                                      14              0.3

The profit and loss account has been prepared on the basis that all operations
are continuing operations.

There are no recognised gains and losses other than those passing through the
profit and loss account.



                                                Notes            £           £
Fixed assets
Tangible assets                                     5                    4,483
Investments                                         6                7,353,691

Current assets
Debtors                                             7       38,212
Cash at bank and in hand                                 3,591,686
Creditors: amounts falling due within one year      8     (51,217)
Net current assets                                                   3,578,681
Total assets less current liabilities                               10,936,855
Capital and reserves
Called up share capital                             9                2,395,985
Share premium account                              10                9,175,770
Profit and loss account                            10                (634,900)
Shareholders' funds - equity interests             11               10,936,855

The financial statements were approved by the Board on 9 May, 2001.

Benjamin Ng

Phill Brown


                                                Notes            £            £
Fixed assets
Tangible assets                                     5                       506
Interests in subsidiaries                           6                10,063,425

Current assets
Debtors                                             7           42
Cash at bank and in hand                                 1,258,558
Creditors: amounts falling due within one year      8     (44,248)
Net current assets                                                    1,214,352
Total assets less current liabilities                                11,278,283
Capital and reserves
Called up share capital                             9                 2,395,985
Share premium account                              10                 9,175,770
Profit and loss account                            10                 (293,472)
Shareholders' funds - equity interests                               11,278,283

The financial statements were approved by the Board on 9 May, 2001

Benjamin Ng

Phill Brown


Net cash outflow from operating activities                           (1,004,649)

Returns on investments and servicing of finance
Interest received                                            360,210
Net cash inflow for returns on investments and servicing                360,210
of finance

Capital expenditure and financial investment

Payments to acquire tangible assets                          (5,545)
Payments to acquire investments                          (7,605,691)
Receipt from sale of fixed asset investment                  275,606
Net cash outflow for capital expenditure                             (7,335,630)
Net cash outflow before management of liquid resources               (7,980,069)
and financing

Issue of ordinary share capital                           11,979,924
Cost of share issue                                        (408,169)
Issue of shares                                           11,571,755

Net cash inflow from financing                                       11,571,755
Increase in cash in the period                                        3,591,686


      Reconciliation of operating loss to net cash outflow from operating

      Operating loss                                                  (995,110)
      Depreciation of tangible                                            1,062
      Increase in debtors                                              (38,212)
      Increase in creditors within                                       51,217
      one year
      Profit on sale of fixed                                          (23,606)
      asset investment
      Net cash outflow from                                         (1,004,649)
      operating activities

2     Analysis of net funds        11 January    Cash Other non-cash         31
                                         2000    Flow        changes   December

                                            £       £              £          £
      Net cash:
      Cash at bank and in hand              - 3,591,686              - 3,591,686
                                   ---------- ----------   ----------- ---------
      Net funds                             - 3,591,686              - 3,591,686
                                   ========== ==========   =========== =========

3     Reconciliation of net cash flow to movement in                       2000
      net funds

      Increase in cash in the                                         3,591,686
      Movement in net funds in the                                    3,591,686
      Opening net funds                                                       -
      Closing net funds                                               3,591,686


a d v e r t i s e m e n t